MONTHLY LEGAL UPDATE – 02/2021: LEGAL UPDATE RELATING TO FINANCE AND CREDIT
v Name of legal document: Circular No. 15/2020/TT-NHNN issued on 20/11/2020 by the Governor of the State Bank amendment and supplement a number of articles of Circular No. 26/2013/TT-NHNN issued on December 5, 2013 of the State bank of Vietnam promulgating the tariff of charges for payment services offered via the State bank of Vietnam (referred to as the “Circular No. 15/2020/TT-NHNN).v Effective date: 01/02/2021.
The content should be noted: Amending and supplementing regulations on International payment service charge.
Specifically, Clause 3 of Article 1 Circular
No. 15/2020/TT-NHNN stipulates: “Article
1.
3.
Part IV “International payment service charge” in the Tariff of charges for
payment services offered via the State bank of Vietnam issued together with
Circular No. 26/2013/TT-NHNN is amended and supplemented as follows:
IV.
International payment service charge:
|
No. |
Types |
Collector |
Payer |
Rate |
|
1 |
Outward remittance fee |
|||
|
1.1 |
Payment in US Dollar (USD) |
Transaction centers and
branches of the State Bank located in centrally-affiliated cities and
provinces that serve their clients with remittance or payment services |
Credit
institutions, foreign bank branches transfer (pay) money |
0.15% of outward remittances
($2/item at minimum; $200/item at maximum) |
|
1.2 |
Payment tin European’s common currency (EUR) |
0.15% of outward
remittances 2 EUR/item at minimum; 200 EUR/item at maximum) |
||
|
2 |
Inward remittance fee |
|||
|
2.1 |
Payment in US Dollar (USD) |
Transaction centers and
branches of the State Bank located in centrally-affiliated cities and
provinces that serve their clients with monetary acceptance services |
Credit institutions, foreign bank branches to receive inward
remittance |
0.05% of inward remittances
($1/item at minimum; $100/item at maximum) |
|
2.2 |
Payment tin European’s common currency (EUR) |
0.05% of inward remittances
(1 EUR/item at minimum; 100 EUR/item
at maximum) |
||
v Name of legal document: Circular No. 17/2020/TT-NHNN issued on 14/12/2020 by the State Bank amending and supplementing a number of articles of the Circular No. 33/2013/TT-NHNN dated December 26, 2013 of the Governor of the State bank of Vietnam guiding procedures for the approval for activities of export and import of foreign currencies in cash of the authorized banks (referred to as the “Circular No. 17/2020TT-NHNN”).v Effective date: 01/02/2021.
The content should be noted: Amending and supplementing regulations on dossiers and procedures for requesting for the approval for export and import of foreign currencies in cash of the authorized banks are specified in Article 3 of Circular No. 33/2013/TT-NHNN.
Specifically, Article 1 Circular
No. 17/2020/TT-NHNN stipulates: “Article 1. Amending and supplementing a number
of articles of Circular No. 33/2013/TT-NHNN
Article 3 is amended and
supplemented as follows: “Article 3. Procedures for requesting for
the approval for export and import of foreign currencies in cash of the
authorized banks
...
2. Dossier includes:
a) An application form for the approval for export and import of
foreign currencies in cash of the authorized banks, made according to the form
provided in Appendix 01 to this Circular;
b) Contract of export and/or import of foreign currencies in cash
signed between a authorized bank and a foreign bank or foreign financial
institution enclosed with a Vietnamese translation certified by the authorized
bank's legal representative (only send for the first time and send additionally
when there is a change);
c) Internal regulations of the authorized bank on the export and import
of cash foreign currencies, in which the provisions on decentralization of
authorization to carry out the cash foreign currency import and export
activities within the system and regulations on management, supervision and
safety assurance in the delivery, preservation and transportation of cash
foreign currencies must comply with the State Bank of Vietnam regulations
(sending only for the first time and sending supplement when there is a
change);
d) Power of attorney in case the person signing the application for
approval is the authorized representative of the authorized bank (only send for
the first time and additionally send when there is a change).
3. Order and procedures for the approval for export and import of
foreign currencies in cash:
a) When wishing to export or import cash in foreign currency,
authorized bank to prepare and send 01 (one) set of dossier to the State Bank
branch in Hanoi city or the State Bank branch in Ho Chi Minh city as prescribed
in Clauses 1 and 2 of this Article;
b) Within 02 (two) working days from the date of receipt of complete
and valid dossiers as prescribed in Clause 2 of this Article, the State Bank
branch in Hanoi city or the State Bank branch in Ho Chi Minh city shall
consider and approve the export and import of cash in foreign currencies by an
authorized bank using the form provided in Appendix 02 to this Circular and
send it to the authorized bank under Points a and b Clause 1 of this Article.
In case the application is incomplete or invalid, the State Bank branch in Hanoi or the State Bank branch in Ho Chi Minh City shall issue a notice on the national single-window portal or a written notice to authorized bank (in the case specified in point b clause 1 of this Article) and clearly state the reason.
4. Within 03 (three) working days from the date of receipt of all documents related to the export and import of cash foreign currency (payment wire and customs declaration), the authorized bank sends The State Bank branch in Hanoi city or the State Bank branch in Ho Chi Minh City a copy of the payment wire and the customs declaration (certified by the legal representative of the authorized bank).”
v Name of legal document: Circular No. 23/2020/TT-NHNN issued on 31/12/2020 by the State Bank provisions on safety ratios and limitations in the operation of non-bank credit institutions (referred to as the “Circular No. 23/2020TT-NHNN”).v Effective date: 14/02/2021.Some contents should be noted: Providing conditions for credit extension for stock investment and trading.
Specifically, Clause 1, Article
12 of Circular No. 23/2020/TT-NHNN stipulates: “Article 12. Conditions and
limits on credit extension for stock investment and trading.
1. Finance companies may only extend credit for a period of up to 01
(one) year for customers to invest in and trade in stocks and when extending
credit, must satisfy the following conditions:
a) The credit extension must ensure the prudential ratios and limits as
prescribed by law;
b) Bad debt ratio below 3%;
c) Fully complying with regulations on risk management in accordance with regulations of the State Bank on internal control system of non-bank credit institutions and regulations on classification of assets, appropriation, method of setting up of risk provisions and the use of provisions to deal with risks in the operations of credit institutions, foreign bank branches.”
v Name of legal document: Circular No. 18/2020/TT-NHNN issued on 30/12/2020 by the State Bank abolishing a number of legal documents promulgated by the Governor of the State Bank of Vietnam (referred to as the “Circular No. 18/2020TT-NHNN”).v Effective date: 15/02/2021.The content should be noted: abolishing Decision No. 1087/2003/QD-NHNN dated on 17/09/2003 of the Governor of the State Bank of Vietnam and Decision No. 45/2007/QD-NHNN dated on 17/12/2007 of the Governor of the State Bank of Vietnam.
Specifically, Clause 4 and Clause
7 Article 1 Circular No. 18/2020/TT-NHNN stipulates: “Article 1. Abolishing all legal
documents
Abolishing all the following legal documents promulgated by the
Governor of the State Bank:
…
4. Decision No. 1087/2003/QD-NHNN dated on 17/09/2003 of the Governor
of the State Bank of Vietnam on issuance of regulations on protecting state
secrets;
…
7. Decision No. 45/2007/QD-NHNN dated on 17/12/2007 of the Governor of
the State Bank of Vietnam on the confidentiality of each type of document,
materials containing state secret in banking area;”
v Name of legal document: Circular No. 22/2020/TT-NHNN issued on 31/12/2020 by the State Bank amending and supplementing a number of articles of the Circular No. 19/2016/TT-NHNN dated June 30, 2016 of the Governor of the State Bank of Vietnam on bank card operations (referred to as the “Circular No. 22/2020TT-NHNN”).v Effective date: 16/02/2021.Some contents should be noted: Amending and supplementing regulations on Transformation schedule designed for card acquirers.
Specifically, Article 1 of
Circular No. 22/2020/TT-NHNN stipulates: “Article 1. Amending and supplementing a
number of articles of Circular No. 19/2016/TT-NHNN
1. Clause 2 Article 27a (supplemented in accordance with Clause 5
Article 1 of the Circular No. 41/2018/TT-NHNN dated December 28, 2018 of the
Governor of the State Bank of Vietnam amending and supplementing a number of
articles of Circular No. 19/2016/TT-NHNN) is amended and supplemented as
follows:
“2. As of December 31, 2021, 100% of ATMs and card processing devices
at point of sale operating in Vietnam of card acquirers shall comply with the
basic standard of domestic chip cards.”
2. To add Clause 4 to Article 27b (supplemented in accordance with Clause 5, Article 1 of the Circular No. 41/2018/TT-NHNN dated December 28, 2018 of the Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 19/2016/TT-NHNN) as follows:
“4. From March 31, 2021, card issuers that issue cards with BINs issued by the State Bank must comply with the basic standard of domestic chip cards. ”.”
v Name of legal document: Directive No. 02/CT-NHNN issued on 07/01/2021 by the State Bank on strengthening prevention, fighting of violations of the law in banking card operations (referred to as the “Directive No. 02/CT-NHNN”).v Effective date: 07/01/2021.The content should be noted: Adding regulations on payment fees are regulated in Circular No. 26/2013/TT-NHNN.
Specifically, Item II of
Directive No. 02/CT-NHNN stipulates: “…
To limit risks, continue to strengthen control, prevent illegal acts in banking
card operations, Governor of the Bank The State Bank of Vietnam (SBV) requires
affiliates of the State Bank, card issuers, card payment organizations,
providers of intermediary payment services, and Representative Offices of
international card organizations take the following measures:
II. For card issuers and card payment organizations
1. Checking and reviewing the entire process, procedures and
regulations on dossiers and contracts for opening and using payment accounts
and bank cards, on that basis, to amend, supplement and complete the above
internal regulations to ensure the safety and confidentiality of customers’
information and comply with the law; reviewing the scope of use of bank cards
in card issuance and usage contracts, limit and exchange rate in card
transactions to ensure compliance with law; strictly comply with the
instructions and warnings of the State Bank of Vietnam1 on the supervision and
control of the banking card operations, with special attention paid to the
identification and verification of information of customers and merchants.
Thoroughly understand all relevant officials in the whole system to strictly
comply with the laws and regulations and internal guidelines issued.
2. Improve the efficiency of administration, operating and the internal
inspection and control system to limit risks, prevent violations of the law on
bank card operations. Organize and coordinate with the information provider to
monitor, check and review card transactions arising at merchants to prevent:
(i) the use of credit card limit for money transfer and credit checking
account, debit card or prepaid card of a customer or a third party (not
merchant); (ii) Payment transactions that do not happen actually at merchants
(no purchase and sale of goods and service provision) for the purpose of cash
withdrawal; (iii) card transactions not in accordance with the law (related to
prize-winning games, gambling, gambling, foreign exchange, securities, virtual
money, electronic money ...). Review, terminate cooperation and take
appropriate measures for information providers, merchants that use bank cards
in contravention of law.
3. Strengthen propaganda and guidance so that customers, providers of
intermediary payment services and merchants can understand and use card
services safely, comply with legal regulations: actively share and exchange
information between card issuers and card payment organizations to promptly
detect suspicious transactions; warns customers, providers of intermediary
payment services, merchants not to use or facilitate other entities to take
advantage of the use of payment accounts, bank cards for illegal purposes, such
as leasing, lending current accounts, buying, selling, renting, leasing cards
or card information, opening card for...
